24/02/2026
Making Tax Digital for Income Tax Self Assessment
Quarterly updates are details of business income and expenses to that point, sent to HMRC via MTD-compatible software. You can send just a total income and expenses summary.
That’s all that’s required. The purpose of quarterly updates provide you and HMRC with an in-year snapshot of your tax position, but they don’t replace the annual tax return.
Nor do you have to pay tax quarterly. The way you make tax payments doesn’t change with MTD for Income Tax. Most people will pay on account by 31 July and 31 January, with any additional balance payable by 31 January, too
Quarterly updates aren’t legally binding and you won’t get penalised if they’re not 100% correct. All you need to provide are the running totals of your income and expenditure.
By enforcing the use of MTD-ready software, HMRC is ensuring that all businesses benefit from modern digital advances such as:
· Reduced errors: Digital records minimise mistakes.
· Time savings: Automated processes cut down paperwork.
· Better visibility: Quarterly updates give you a clearer picture of your tax position throughout the year.
